Resource Allocation in Translational Neuroscience: Resource Allocation in Translational Neuroscience: An Industry Perspective in 2009An Industry Perspective in 2009

Janet VergisJanet Vergis

PresidentPresident

Janssen, McNeil Pediatrics, and Ortho-McNeil Janssen, McNeil Pediatrics, and Ortho-McNeil

NeurologicsNeurologics

What’s on Our MindsWhat’s on Our Minds

Declining pipeline Declining pipeline productivity productivity

Key ConsiderationsKey Considerations

Policy

Payers, providers, patients

Patient Segmentation

Platform Advances

PolicyPolicy

Healthcare Reform Changes in Medicare/Medicaid Value-based purchasing Medical home model Increased transparency

Comparative Effectiveness

FDA reform

Patent legislation

Providers, Patients & PayorsProviders, Patients & Payors

Employees Elderly/Disabled In-home caregivers

Hospitals, Clinics Physicians & Health Professionals Pharmacies

ProvidersProvidersProvidersProviders

Patients & Patients & CaregiversCaregiversPatients & Patients & CaregiversCaregivers

Health policy (CMS, APHA, AMA) Quality initiatives (NCQA, NCF) Advocacy

Employers Government (CMS, Medicaid) Consumers

MCO, PBMs Medicare Providers (PDPs) Retail Chains/Wholesalers

Health Care Health Care FundersFundersHealth Care Health Care FundersFunders

IntermediariesIntermediariesIntermediariesIntermediaries

Policy Policy MakersMakersPolicy Policy MakersMakers InfluencersInfluencersInfluencersInfluencers

The Many Stakeholders of US HealthcareThe Many Stakeholders of US Healthcare

Platform AdvancesPlatform Advances

Biomarkers and tools – RNAi, Neuroimaging, genetics, epigenetics, genomics, proteomics, metabolomics

PGx – Personalized Medicine

Stem Cell research – Neurogenesis

Bioinformatics – Computational modeling, In silico clinical trials

Nanotechnologies – Neuroprotection, Transport across blood brain barrier

Health Information Technology

Drug-Device combos

Patient Patient SegmentationSegmentation

DSM V

Key Investment QuestionsKey Investment Questions

Where are the greatest unmet needs?

How can we bring true value to the market?

What forces (social, scientific, economic, political) will be shaping the health care market when the medicine is approved?

What are our capabilities? Where should we outsource?

What can we discover/develop? What must we in-license?

How are we going to use recent advances in technology to develop better drugs more efficiently?

How much IP can we share… or must we share? How can we better coordinate efforts in the pre-competitive space?

How do we balance long term (> 10 years) and short-term (5-10 years) investments?

What is the ratio of investment toward advancing the science, public health, and our products?

New mindsetNew mindsetin R&Din R&D

Entity prioritized over ideas, technologies, and economies

Simplistic investment model (own risk & reward)

Siloed R&D and idea generation

Innovation and advancement prioritized over entity

 Co-creation and sharing of intellectual property (risk & reward)

Wider range of expertise – merging of private and public and external industry best practices

Focus on consumer needs

Closed Model Open Model

Expanding Approaches to Expanding Approaches to InnovationInnovation

Research Pool

“The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”

Albert Einstein

Resource Allocation in Translational Neuroscience: Resource Allocation in Translational Neuroscience: An Industry Perspective in 2009An Industry Perspective in 2009

Janet VergisJanet Vergis

PresidentPresident

Janssen, McNeil Pediatrics, and Ortho-McNeil Janssen, McNeil Pediatrics, and Ortho-McNeil

NeurologicsNeurologics